I read that when Michael Jackson died, he was $500 million in debt. How does someone get into that kind of debt?

Question

I read that when Michael Jackson died, he was $500 million in debt. How does someone get into that kind of debt?

In: Economics

Answer 1

The rich don’t spend their money they borrow against their assets because you don’t have to pay taxes on borrowed money and when they die their estate settles the debt and may even settle the taxes for less than was owed